February 19, 2012 10:07 pm
My wife brings in 40% of our household income. I am 30, she is 27. Should we buy a life insurance (term plan) for her. Or is it not required.
A fair calculation can be on the basis of her revenue contribution in your family income. Compute the overall requirement of your family’s monthly expendenture. Once that is done, identify the overall sum assured to cover the monthly expenses. 40% of the sum assured may then be via the term insurance of your wife.
Dear Ninad, Please purchase at least 10 times of her annual income term cover for her. If your household income is 1L Rs., She is contributing 40K to it & add the replacement cost as mentioned by dear JustGrowMyMoney & you ‘ll notice that the true financial worth of your wife is a lot more than what you were thinking till date.
Please cover her as well as yourself also adequately.
Truy speaking – if your spouse brings in 40% of the income the contribution to overall goals will as much be in similar proportions. In my opinion spouse WILL need Term insurance coverage.
Thats brings another thought: In reality home makers are considered to bring zero income and there is a prevalent thought they need not be insured. One must consider the replacement cost of home makers – Running the home, making food, help with homework etc. and.a value be ascertained and insured.
All you need to ask is , are you dependent on her income and to what extent ? If you are dependent , then yes , it would be a good idea to insure her ..
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